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A statement released Friday afternoon indicates that Catholic Health Initiatives, a Colorado-based nonprofit that currently sponsors St. Joseph's, accepted the hospital's recommendation to transfer the hospital to the University of Maryland Medical System.

"The board recognized that as health care reform continues to evolve, it will be critical for health providers to be part of a regional network of coordinated health care organizations including hospitals, physicians, payers and other related health entities in geographically proximate areas," the statement read.

UMMS released a statement Friday afternoon, saying, "The University of Maryland Medical System is pleased to have been selected as the preferred partner to acquire St. Joseph Medical Center and help them continue their long tradition of serving the community. We are looking forward to working with the staff and physicians of St. Joseph and to moving forward with Catholic Health Initiatives to finalize the terms of the agreement."

Exclusive negotiations between the two parties to sign a nonbinding letter of intent is anticipated soon, after which, terms of the agreement will be settled.

The transfer will need to be approved by CHI, federal, state and church authorities.

The financially troubled hospital sought bidders while facing complaints about hundreds of unnecessary medical procedures. LifeBridge Health, which owns Sinai and Northwest hospitals, and St. Agnes Hospital were also finalists to acquire the 263-bed hospital in Towson.

In November 2010, St. Joseph's agreed to a $22 million settlement involving unnecessary stents implanted in several patients. The hospital notified about 600 patients in 2009 that stents had been placed in their arteries that they might not have needed.

The hospital's admissions and revenue fell amid the controversy and it faces millions of dollars in lawsuits from former patients. It recently laid off 17 people.